Commercial property foreclosure is very different from residential property foreclosure. Few attorneys will work with defendants of commercial foreclosures because there are very few avenues to defend against one. Depending on the specifics of your situation, there may not be much you can do to fight a commercial foreclosure.
However, at Denbeaux & Denbeaux Law, we believe that commercial foreclosures should be held to the same standards as residential foreclosures and commercial property owners should exercise all of their rights to defend against foreclosure.
In certain cases, with some lenders, we may be able to fight a commercial property foreclosure. If you believe you may fit the criteria for a defense against commercial foreclosure, you should contact our firm to discuss your options.
A commercial foreclosure attorney can help review your case and determine if you have a case for a defense. Contact Joshua Denbeaux today to learn more about how we may be able to help you through foreclosure on commercial properties.
What Is a Commercial Foreclosure?
A commercial foreclosure occurs when a borrower fails to make loan payments or violates the terms of their commercial loan, and the lender takes the property back.
The foreclosure process can happen faster with a commercial foreclosure property than with a residential foreclosure. RESPA protects homeowners in specific ways and creates more defense options for residential properties, unlike commercial foreclosure.
There are fewer protections for commercial properties. For example, foreclosure proceedings can begin as soon as a loan is in default.
If you’ve been searching for information about defending against a commercial foreclosure, be aware that most articles you’ll read are focused on residential foreclosures. The advice may not apply to your situation.
Ways Commerical Foreclosures Are Breaking The Law
With little regulation in the commercial lending industry, commercial foreclosures are often more likely to be flagrantly breaking federal laws against predatory lending and business practices.
You may be able to fight against a commercial property foreclosure if your lender used one of the following tactics:
- Absurdly high default interest rates
- Fraudulent defaults when the borrower is not in default
- Improper attorney fees imposed by creditor
- Seizure of insurance proceeds
Any of these are a sign that your commercial lender is likely not playing by the rules and you have a way to defend against a commercial foreclosure
Illegal Commerical Foreclosure Tactics
If you have a commercial loan through Loan Funder LLC or Superior Loan Servicing, you may have an opportunity for a defense and an ability to fight the commercial foreclosure.
In our investigations, these lenders allegedly have unreasonable default rates for their commercial loans. An unreasonable default rate is a high default rate, such as 45%.
Another piece of information that can help build a commercial foreclosure defense is when lenders use unusual lending tactics, like using stock shares as collateral in loans. Loan Funder LLC and Superior Loan Servicing have allegedly used stock shares as collateral against commercial loans in the past. Stock shares as collateral mean that stock in your company is being used to back your commercial loan. This type of collateral may violate federal law.
We’ve found two of these lenders who have used stock shares as collateral against a loan, but there may be more than our firm is aware of. If you have a commercial loan with Loan Funder LLC, Superior Loan Servicing, or another lender with similar tactics and are facing commercial foreclosure, you may have a defense.
Contact Our Commerical Foreclosure Attorney Today
Act quickly if you’re facing commercial foreclosure to limit damages or interruptions to your business. Preparing a commercial foreclosure defense can take time, and the timelines for commercial foreclosures are far faster than residential foreclosures.
Denbeaux Law may be able to help you defend your commercial property from foreclosure. If you’ve worked with certain lenders and have specific lenders, there may be an ability to defend your property from foreclosure.
If you think you have a case to fight against commercial foreclosure, contact a foreclosure attorney as soon as possible. Contact Joshua Denbeaux today to learn more about how we may be able to help you fight foreclosure.
